Holy Special Dividends: Tellabs

Trading halted on Tellabs Inc (TLAB) this afternoon after the company announced an incredible $1 special dividend per share. Mind you that when trading halted TLAB was at $2.95. You can bet this stock is going to the races once it starts trading again.

Tellabs Inc. (TLAB) announced that its board declared a special cash dividend of $1 per share. The dividend is payable on December 21 to stockholders of record as of the close of business on December 14.

The company stated that the special dividend is in addition to a stock repurchase announced on November 20. The company intends to repurchase its common stock under an existing Board of Directors authorization, previously announced on November 8, 2007. The company may repurchase up to $224.6 million under the previously announced repurchase program.

The company added that it plans to use part of its $942 million in cash, cash equivalents and marketable securities for the program. The company has no debt.

Bottom line:

Fellow Masters, this is an unbelievable deal. Buy shares before Dec 14th if you want to play this action.

Tellabs special dividend is more than 33% of its current share price. You pay less than $3 (provided you can buy it that cheap after trading resumes) and get a $1 dividend one week later? If Tellabs is crack right now then hand me the pipe because I am about to smoke it. Thank you Pookie.